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Casino operator MGM beats third-quarter estimates as China travel rebounds

Published 11/08/2023, 05:38 PM
Updated 11/08/2023, 05:40 PM
© Reuters. FILE PHOTO: An exterior view of MGM Grand hotel and casino, after MGM Resorts shut down some computer systems due to a cyber attack in Las Vegas, Nevada, U.S., September 13, 2023. REUTERS/Bridget Bennett/File Photo

(Reuters) - MGM Resorts (NYSE:MGM) International beat market estimates for third-quarter profit and revenue on Wednesday, as the casino operator benefited from easing pandemic-related entry restrictions in its key markets.

The post-pandemic travel rebound in China and Macau has been a tailwind for casino operators such as MGM Resorts and Las Vegas Sands (NYSE:LVS) Corp.

"MGM China (OTC:MCHVY) is performing exceptionally well," MGM's CEO Bill Hornbuckle said in the statement.

Shares of the company were up 2.6% at $39.61 after the bell.

Last month, MGM had said it expects a $100 million hit to its third-quarter results after a cyberattack disrupted its operations, forcing a shutdown of its systems.

MGM, along with Wynn Resorts (NASDAQ:WYNN), also faces a potential strike after about 35,000 Las Vegas hospitality workers are ready to walk off the job on Nov. 10 if they do not have a labor contract by then.

MGM's total revenue rose about 16% to $3.97 billion in the quarter through September, compared with analysts' average estimate of $3.87 billion, according to LSEG data.

Its per-share adjusted profit of 64 cents in the quarter also beat analysts' expectations of 49 cents.

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